Tighter crypto regulation in Thailand delays Bitkub’s acquisition
Thailand’s plan to tighten crypto regulations has caused major setbacks for retail investors and digital asset enthusiasts. In addition, several companies have taken a big hit due to this decision. Increased oversight of digital assets comes after the industry has witnessed major sales over the past couple of months.
The Securities & Exchange Commission plans to make changes to the existing regulations put in place in 2018. Crypto asset platforms will soon face stricter regulations in Thailand.
Most of the focus should be directed towards safeguarding the interests of small investors who have invested a large sum of their savings in crypto.
Recently, Zipmex, a cryptocurrency exchange that has a large presence across Asia, stopped their withdrawals, causing panic across Thailand.
In light of recent events, Thailand’s oldest bank has had trouble acquiring the country’s largest local crypto exchange. This is mainly due to the stricter regulations in Thailand.
Siam Commercial Bank delays the acquisition of the country’s largest crypto exchange Bitkub
Siam Commercial Bank (SCB) is Thailand’s oldest bank that was to buy Bitkub, which is a well-known crypto exchange. The bank is unable to do so as Thailand has recently tightened regulations on cryptocurrencies.
A subsidiary of the bank was reported to buy a 51% stake in Bitkub. The timeline mentioned was apparently second quarter 2022, the plan was to become a regional fintech after the acquisition. There is currently no date in sight for the acquisition.
An officer from SCB X quoted,
We have made it clear in our statement to the Stock Exchange of Thailand (SET) that the deal is still under due diligence, we do not know when the deal will be sealed
Earlier this month, the company notified the stock exchange in Thailand that the delay is being discussed by regulatory bodies and that the acquisition date has been postponed.
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SCB X wanted to become a regional Fintech player
SCB X had announced that they wanted to buy a stake in Bitkub last year, in November. This agreement was part of SCB’s strategy to become a regional fintech player. The acquisition was originally due in the first quarter of 2022.
Bitkub at the time had a value of 35 billion baht ($1.05 billion) and it had a unicorn status. The new tightening of the rules has now led to restrictions on the use of payments and targeted only licensed trading platforms in the country.
Bitkub’s intention was also to expand their current customer base, but the downturn in the crypto market has dampened that plan. Due to tightening regulations, the Bitkub exchange has now moved to Vietnam. Vietnam currently has a very friendly crypto community.
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Featured image from UnSplash, chart from TradingView.com
